No Measures to Plug VAT Inequality

March 17, 2017 by Carol Peett

New houses v renovations

There were calls ahead of yesterday’s Budget statement for the chancellor Philip Hammond to announce fresh measures to plug the ‘inequality’ in VAT between new builds (0%) and renovations (rated at 20%).

Carol Peett, managing director of West Wales Property Finders, was among those seeking change and urged the chancellor to introduce a fairer solution by bringing it in line with the 5% VAT rate that is chargeable on renovating a dwelling that has been empty for at least two years.

Her vision was that the existing housing shortage could be alleviated by encouraging people to extend their living space, enabling a property suitable for a couple to be converted into one able to house a family.